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Do you raise your deductibles to save money?

Last Updated: December 8, 2014 BY Michelle Schroeder-Gardner - 9 Comments

Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.

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Whenever I read articles about saving money, the article almost ALWAYS says to adjust your deductibles for different things, such as car and home insurance.

My auto deductible is at $1,000 and my house is at $1,500 I think (I’m not even sure, this amount may be way off, I should probably check on this).  Some people think $1,000 is high, but I’ve never been in an accident where it’s been my fault, so I’ve never had to pay my deductible.  I’m not too worried that anything will happen. And raising it from $500 to $1,000 saves around $100 every 6 months.

So what do you do? How high are your deductibles?

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9 Comments
Filed Under: Budget Tagged With: Savings, Spending

About Michelle Schroeder-Gardner

Michelle is the founder of Making Sense of Cents, a blog about personal finance and traveling. She discusses how her business has evolved in her side income series. She paid off $40,000 in student loans by the age of 24 mainly due to her freelancing side hustles. Click here to learn more about starting a blog!

Comments

  1. Newlyweds on a Budge says

    October 13, 2011 at 10:43 am

    i so get this! my husband is all "I don't want to have to pay $1,000 if I get into a car accident!" but if you don't get into a car accident for 1 year, you save $1,000 on insurance and you can put that toward your emergency fund and use it if you ever do get into an accident! I have let the insurance thing go on long enough…we're finally going to be on insurance together and I totally plan on changing his deductible.

    Reply
  2. worldwidemom says

    October 13, 2011 at 10:53 am

    I love your blog. There are really a lot of interesting informations. Thank you for stopping by my blog!

    Reply
  3. Sarah @ 90 Percent B says

    October 13, 2011 at 11:28 am

    I've raised mine to save money. I think I kept the car at $500 but I raised my renters to $1,000. Knock on wood, nothing has happened and it's a way to save a little at a time!

    Reply
  4. Tanner says

    October 13, 2011 at 12:22 pm

    My parents have a deductible on one of the cars (the one the two younger siblings drive) to $500, because although they have not been in an accident, they are young and they travel about 60 miles daily. I get what Newlyweds is saying… it makes sense how she says it as well (save $1000/year if you don't have an accident vs paying extra for a deductible you may never use), but for right now, I think we like the assurance that if something does happen, we wont have to put that much forth… it may change after they've built a nice EF and savings fund, though.

    Reply
  5. Stephanie says

    October 13, 2011 at 2:11 pm

    I have $1000 deductibles on both my car and homeowner's insurance. I figure as long as we have enough set aside to cover the deductible should we need it, it's worth it to save all that money each year!

    Reply
  6. jamie says

    October 13, 2011 at 3:19 pm

    the deductible on my auto insurance is $1000 and the same is for my home insurance. in fact, i JUST raised the deductible on my home insurance because yes, i was trying to save money =) we'll see how much it helps =)i hope your week went well! take care and talk to you soon!!x jamiebeautyandlechic.blogspot.comformerly blogredhead.blogspot.com

    Reply
  7. Emma, Ella you pick! says

    October 13, 2011 at 6:39 pm

    Interesting, my parents take care of that^^ I don't really know :)!!! Hope your doing good, thx for the comment.xo Emma

    Reply
  8. Mom of G says

    October 14, 2011 at 2:26 am

    We have a $1000 deductible on each car and our house policy is $2500. Our thought process is that we just want a little less than catastrophic coverage and we will deal with things that are less than that on our own.

    Reply
  9. Sam says

    November 23, 2012 at 8:26 am

    My deductibles are soo high. I save a lot per month by doing this. Bob my health insurance and car insurance deductibles are $5000. I know to most people this seems insane, but doing so saves me hundreds per month. I would rather take money out of savings to pay the deducta me should I ever have to than pay hundreds extra each month.

    Reply

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My name is Michelle and I'm the author/owner of Making Sense of Cents. Learning how to save money and make more money changed my life. It allowed me to pay off $40,000 in student loans, start my own business, and I now travel full-time.

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